This article is for informational purposes only and does not constitute legal advice. Consult a licensed Florida attorney for advice specific to your situation.
If you are using a Florida child support or alimony calculator, the numbers you see are only as accurate as the data you input. When you are divorcing a W-2 employee, determining income is usually as simple as looking at a pay stub. However, when you are divorcing a business owner, an entrepreneur, or an independent contractor, the numbers on their financial affidavit rarely tell the whole story.
Self-employed individuals have a unique opportunity to manipulate their income to artificially lower their support obligations. Because they control the flow of money into and out of their business, they can employ various tactics to make themselves appear less wealthy than they actually are. If you suspect the calculator number is far too low, your spouse may be using one of these five common methods to hide income.
1. Running Personal Expenses Through the Business
This is perhaps the most common tactic. A business owner might use company funds to pay for their personal vehicle, cell phone, travel, meals, or even their mortgage. Under Florida law, these are considered "in-kind payments." If a business covers expenses that reduce a parent's personal living costs, that value should be attributed as income when calculating support.
2. Delaying Invoicing or Compensation
If a spouse knows a divorce is imminent, they may intentionally delay billing clients or ask to defer their own compensation until after the financial settlements are finalized. By pushing revenue into the future, their current income appears artificially low during the critical months when support is being calculated.
3. Skimming Cash
In businesses that handle a significant amount of cash — such as restaurants, salons, or contracting services — it is incredibly easy for an owner to simply pocket a portion of the daily revenue before it ever hits the business bank account or the tax returns. This "off-the-books" income is difficult to trace without professional help.
4. Paying "Ghost" Employees
A more sophisticated method involves keeping individuals on the payroll who do not actually work for the company, such as friends or family members. The business owner then funnels money to these "ghost employees," who subsequently return the cash to the owner under the table, effectively hiding the income from the divorce proceedings.
5. Overstating Business Expenses
A spouse may aggressively prepay business expenses, purchase unnecessary equipment, or suddenly claim massive depreciation on assets. While these might be legitimate tax strategies, in a divorce context, they are often used to artificially suppress the net income available for child support and alimony.
What Florida Courts Can Do
Florida courts do not look favorably upon spouses who intentionally underreport earnings. If proven, a judge can "impute" income, meaning they will assign an income level based on what the spouse should be earning, rather than what they claim to earn. However, proving this deception requires concrete evidence — typically from a forensic accountant working alongside your attorney.
Run the numbers with accurate income figures — and see what the real support obligation should be when all income is accounted for.
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